Market Assessment – As of Tuesday, October 11 2022 at 11:15 p.m.
We think the Market is firming, and that this is a Great Buying Opportunity for two quality Tech stocks- Meta Stocks (META) 128.54 and Alphabet (GOOG) 98.05. META was selling for $380 fourteen months ago, and has a PE Ratio of 11.08, and GOOG was selling for $150 a year ago, and has a PE Ratio of 18.43. We think they are bargains at these prices.
We also like the below four Quality Speculative stocks. As of 10/11/22 we own BLUE, DKNG and IMUX, and traded RCKT for a profit….and still like it.
1. Bluebird Bio (BLUE) $6.89. The company was one of the pioneer gene therapy Biotech Darling stocks back in 2019, selling for over $140 per share. In the 2rd quarter, the company received FDA approval for two of its drugs: Zynteglo and Skysona. The problem is that the drugs might carry a huge $3,000,000 price tag, and the diseases they treat only afflict tiny portions of the population. However the company plans to file for approval of lovo-cel early next year, which is a treatment for sickle cell…which would have a much bigger market. The company is strapped for cash, and the stock is VERY RISKY. Keep in mind that the company could be a buyout target at a much higher price. Goldman Sachs Maintained it Sell Rating on 8/19/22. Raymond James Maintained its Out- perform Rating on 9/20/22. We like the stock and think it could double in 60 days because it is has a relatively small float of 66.6 Million shares, and 20 Million shares short…35.73% …great numbers for a short squeeze.
2. Draftkings Inc (DKNG) $13.68. The company operates a digital sports entertainment and gaming company. Back in early 2021 the stock sold for $74 a share, and was the Hot, Must-Own,Casino Stock, and now it’s selling for a fraction of that amount. Reportedly its top-line growth continues to improve by double digit margins each quarter, generating roughly 56.6% revenue growth from the prior –year period in the second quarter. They were a highly visible sponser for the U.S. Open Tennis Matches, and are a household name in the online sports betting market. They are rumored to be close to making a deal with ESPN, which could help move the stock. Roth Capital upgraded it from Neutral to Buy on 8/17/22 and SusQuehanna gave it a Positive Rating on 9/6/22. Needham Managing Director, Bernie McTernan expects the company to become profitable in the 4th Quarter of 2023, and has a Buy Rating on the stock with a 12 month $25 price target. We like the stock and think it could double in 90 days.
3. Rocket Pharmaceuticals (RCKT) $16.48. The company, together with its subsidiaries, operates as a multi-platform biotechnology comp[any that focuses on developing gene therapies for rare and devastating diseases. On Monday the company announced it had commenced an underwritten public offering of 6,800,00 shares of its common stock for $14.75. Instead of making the stock price drop, which would be the usual scenario, it opened up above $16 on Tuesday. Chardan Capital gave it a Buy Rating on 10/3/22 and Raymond James did the same. We like the stock and think it could double within 90 days.
4. Immunic, Inc. (IMUX) 9.41. The company is a clinical-stage biopharmaceutical company that develops a pipeline of selective oral immunology therapies for the treatment of chronic inflammatory and autoimmune diseases. Analyst Vandana Singh reported that the company’s drug candidate IMU-838 succeeded in a a Phase 2 trial for multiple sclerosis (MS) and that HC Wainright recently gave it a Buy Rating and a $26 price target. The stock began rocketing upward on Mon-day. We bought in today.
Joe Cotton has won three National Stock Picking Contests with yearly percentage gains in excess of 96%. His 2020 Wall Street’s Best stock contest winner was Inovio Pharmaceuticals (Symbol INO) with a 742% 1-Year return.
This article is not investment advice, nor is it in any way to be construed as investment advice. For Investment Advice consult a Registered Investment Advisor or a Certified Financial Planner. Joe Cotton’s website is www.cottonstocks.net. NKY’s Joseph W. Cotton is publisher of the market newsletter, Cotton’s Technically Speaking. He is a graduate of Xavier University, a former bank manager and credit analyst, and a former Fidelity Investments registered investment representative. Contact him at cottonstocks@hotmail.com
